HomeAltcoin NewsBitcoin Cash Analysis: Key Resistance Near $550

Bitcoin Cash Analysis: Key Resistance Near $550

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  • Bitcoin cash price started a major decline below the $550 zone against the US Dollar.
  • The price is now trading below the $520 zone and the 55 simple moving average (4-hours).
  • There was a break above a key contracting triangle with resistance near $500 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could continue to rise towards the main $550 and $555 resistance levels in the near term.

Bitcoin cash price is eyeing recovery above $500 against the US Dollar, similar to bitcoin. BCH/USD could resume its decline if it fails to clear $550.

Bitcoin Cash Price Analysis

Bitcoin cash price started a major decline from well above $550. BCH broke the $500 support level and the 55 simple moving average (4-hours) to move into a bearish zone.

It even traded below $480 and spiked below $475. A low was formed near $471 before the price started an upside correction. There was a break above the 23.6% Fib retracement level of the downward move from the $556 swing high to $471 low.

There was also a break above a key contracting triangle with resistance near $500 on the 4-hours chart of the BCH/USD pair. The pair is now trading below the $520 zone and the 55 simple moving average (4-hours).

An immediate resistance is near the $515 level. It is close to the 50% Fib retracement level of the downward move from the $556 swing high to $471 low. The next major resistance could be $540. The main breakout zone is near the $550 level.

A clear break above $550 and $555 might trigger a sharp upward move. On the downside, an initial support is near the $495 level. A downside break below the $495 support zone could open the doors for a fresh decline. The next major support is near the $470 level, below which the bears might aim a test of $420.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is now trading below the $520 zone and the 55 simple moving average (4-hours). Overall, the price could continue to rise towards the main $550 and $555 resistance levels in the near term.

Technical indicators

4 hours MACD – The MACD for BCH/USD is slowly gaining pace in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now above the 50 level.

Key Support Levels – $495 and $470.

Key Resistance Levels – $515 and $550.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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